Democracy Now!: Gov’t Audit Criticizes Handing of AIG Bailout


A new government audit has found that the Federal Reserve Bank of New York mismanaged the $85 billion bailout of AIG by refusing to use its considerable leverage to wring concessions from AIG’s trading partners. This resulted in the New York Fed paying full market value for assets underlying credit default swaps written by AIG to Goldman Sachs and other banks. This was done even though at least one bank, UBS, offered to cancel the contracts for less.

~ by wheresthemic on November 17, 2009.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: